Which of the following is true?
A. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time.
B. As long as resources are scarce, output cannot be increased.
C. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less.
D. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.
Answer: D
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If a firm in a perfectly competitive market faces a market price of $2, and it decides to increase its production from 2,000 units to 4,000 units, the firm's marginal revenue:
A. will increase from $4,000 to $8,000. B. will decrease from $8,000 to $4,000. C. will stay the same. D. None of these is true.
What are the various sources of revenue and expenditure for a commercial bank?
In general, when the price of a fixed factor of production increases:
A. the profit-maximizing level of output increases. B. the profit-maximizing price falls. C. marginal cost increases. D. marginal cost is unchanged.
Medicare subsides will cause people to
A. consume more medical services than in the absence of the subsidies. B. consume the same amount medical services as they would if there were no subsidies. C. be sicker because of inferior care. D. consume less medical services than in the absence of the subsidies.